11th Jan 2017 07:47
LONDON (Alliance News) - National Express Group PLC on Wednesday said it has agreed to sell the c2c rail franchise in the UK to Trenitalia, the passenger rail transportation company arm of Italian transport company FS Italiane Group.
The c2c franchise covers the rail line linking London to Southend and Tilbury in Essex.
Trenitalia will pay around GBP70.0 million to acquire the franchise, resulting a "small" net profit for National Express, the UK public transport operator said. The deal remains subject to final approval from the UK's Department for Transport, expected in the next three to four weeks.
National Express said it has seen significant growth in its North American and European businesses in recent years and, while not ruling out participating in future UK rail contracts, reckons there are significant opportunities for growth in these markets.
"We have been impressed by the commitment and interest shown by Trenitalia and are grateful for the support shown by DfT in this process. Trenitalia has significant rail credentials and is excited by the opportunity to invest in the new agenda set out by the Secretary of State," said National Express Chief Executive Dean Finch.
"For National Express, while not ruling out participating in future UK rail bids, this allows us to pursue further growth opportunities in the markets where we have seen strong returns in the recent years," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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